Sask. agriculture, livestock, other sectors concerned over possible national railways lockout

The provincial government says looming job action by the country's two main railways could have a devastating effect on Saskatchewan's economy and reputation.

CN Rail has threatened to lock out employees as early as Aug. 22 if it can't come to an agreement with Teamsters Canada Rail Conference (TCRC)on issues such as scheduling and wages. The union, which represents 9,300 conductors, engineers and yard workers, is simultaneously holding labour talks with Canadian Pacific Kansas City Ltd.

The province is calling for binding arbitration or back to work legislation. But on Thursday, Federal Labour Minister Steven MacKinnon rejected a request from CN Rail for binding arbitration, and the clock continues to tick.

"This has an impact on the entire economy of this country. Thishas[an] impact onevery citizen in this country, not just a farmer or rancher or an oil company or potash mine," saidSaskatchewan Minister of Agriculture David Marit Thursday afternoon.

Maritadded thatthe potential strike could also impact grocery stores, the automotive industry and other sectors.

"It would be hundreds of millions of dollars.There's still time for the parties to get back to the table. There's still time for the federal government to implement actions," Marit said.

Minister MacKinnon saidhe wants to make it clear that he expects CN Rail and the Teamsters Canada Rail Conference to negotiate in good faith, adding that federal mediators remain available to help the process along.

Meanwhile, the union said the only way forward is for the rail companies to back down on their demands for concessions. CN Rail says the union needs to engage meaningfully at the bargaining table and that the union has rejected four contract offers this year without proposing a counter-offer.

Both CN Rail and CPKC have begun halting shipments of certain goods including hazardous materials to ensure they don't become stranded on the tracks in the event of a work stoppage.

On Thursday, Pulse Canada said thatif there is a rail stoppage, it will cripple farmers' livelihood and damage Canada's reputation as a reliable supplier. Potash and mining groups are also voicing similar concerns.

Transportation key for ag sector

Murad Al-Katib, president,CEOand board member of AGTFoodand Ingredients Inc., said the agriculture sector is a major driver in the Saskatchewan economy, and said a rail stoppage would have serious consequences.

"Especially this is the case in the summer as farmers are getting in and out of the fields to commence their harvest, with some areas of our province already underway," Al-Katib said.

"It's the simple reality that the agriculture industry relies on rail to continually move our grain from farmer's bins to grain elevators, to processing facilities around the country and to our ports and to our clients."

Al-Katib said that as a landlocked location, transportation is key to Saskatchewan farmers and processors.

"The past seasons have been very tough in Saskatchewan, with three consecutive years of very significant drought and suboptimal conditions impacting our production levels," he said.

"This year, with the crop to ship looking very promising, we cannot be in a position where a disruption happens."

Al-Katibalso said that a rail strike wouldn't just disrupt service for its duration. He said days can lead to disruptions that last weeks to months for the affected sectors.

AGTFoodand Ingredients Inc. is calling for no rail work stoppage at all

"There has to be fair policy mechanisms that come to deal with these types of issues while continuing to ensure that the product moves to markets,"Al-Katibsaid.

Effect on livestock sector

Meanwhile, the Saskatchewan Cattlemen's Association(SCA) said the possible strike sends a poor message to the international market that Canadawould have"such an unreliable piece of infrastructure in our country."

"And it really sends a signal to our trading partners that we are not a reliable trading partner. And that has a significant impact to our agriculture sector. We are acommodity-based sector," the SCAsaid on Thursday in a meeting with other stakeholders.

"Of course we export a tremendous amount of goods, but on the other side we also import a tremendous amount of goods, in particular for our feeding herds."

The SCA said that one railcar provides enough feed for 8,000 animalsper day.

"To duplicate that through trucking would take more than 1,000 Super Btrucks each week. [It's] simply not a feasible replacement in terms of keeping our animal welfare and the welfare of our producers and operators in mind."

The SCAsaid it encourages all Saskatchewan stakeholder companies and groupsto continue to lobby and advocate against a rail stoppage of any form.